What is an Enterprise Resource Planning (ERP) system?

A cloud ERP system could be the right option for you.

Enterprise resource planning (ERP) systems offer companies the benefits available from more robust out-of-the-box accounting systems which can lead to a reduction of operational risks, more comprehensive reporting and more efficient processes.  ERP accounting systems manage and integrate business processes via a single system in the cloud, and with a better line of sight, companies can better plan and allocate resources. Without ERP, companies tend to operate in silos, with each department using its own disconnected system.

Cloud ERP systems are about the free flow of communication and sharing of knowledge across an organisation, the integration of systems for improved productivity and efficiencies, and increased synergies across departments and business units. A company’s culture needs to change when moving to a Cloud ERP system, if it doesn’t then investing in an ERP may be counterproductive. Most mid-market companies that are growing, and also smaller and more complex companies, may need a Cloud ERP system to continue their business journey.  It’s more than an accounting system and ultimately helps the whole organisation function and engage with staff. 

Historically, companies have had to choose between two types of accounting systems.  The first is an out-of-the-box small business solution which is incredibly simplistic and will not develop and change with your company.  The second is ERP accounting systems that are more powerful but must be implemented from scratch which is expensive and takes months to implement.  The key is to find a system that is configured out of the box but can be modified to scale and adapt to your company's growth.

A robust Cloud ERP system can be put in place within days and the system should be specifically configured to your industry or your case.  Immediate activation means faster time to value.  A clean, easy-to-use interface should be included out-of-the-box.  Out-of-the-box solutions should also be easy to customise. If you are using Business Process Outsourcing (BPO) as part of your finance team then your outsourcing partner can change the configuration as your company scales and changes.  This BPO option can substantially reduce the cost of set-up and operation.

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What ERP solutions are available?

ERP system examples come in many shapes and sizes.  At the larger end of the scale, there is ERP accounting software from many providers including some of the big familiar brands such as Oracle Netsuite, Microsoft Dynamics, Sage ERP, SAP ERP and IFS ERP amongst others. Many other smaller providers can offer more bespoke solutions for specific markets such as specific ERP solutions for manufacturing businesses.  There are Business processing outsourcing (BPO) providers like us, that have experience in a variety of offerings that can help you more quickly access the benefits available from ERP, whilst also outsourcing your finance team. 

These ERP system examples all have their pros and cons but by reviewing the options available to your company, a full scoping exercise would be required.  The scoping should probably be carried out alongside a review of the business processes within your company and a review of the management reporting.  The scoping would include the analysis of your requirement for such things as:

• Cloud ERP platform, which most organisations are embracing
• Dashboards, which can help stakeholders quickly understand their relevant KPIs
• Optical character recognition, which reduces the amount of resources required in your finance team
• Approval matrices that allow different approvers depending upon value, supplier, department, nominal heading, etc.
• Workflow tools and process automation, that will enhance quality and reduce the resource requirement in your finance team
• Analytics, which can improve the business’s understanding of the trading performance

In conclusion, Cloud ERPs are wider than normal accounting systems and can improve your business processes, improve analytics and reporting, streamline your finance team and reduce costs.  The benefits of ERP can normally lead to your company being more efficient and better informed, which will in turn increase the bottom line.  The setup of a Cloud ERP can be relatively inexpensive, depending on your requirements.

If you would like to know how we can support you, please contact us today for a free 30-minute consultation.

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